STF receives request from the city hall to suspend installments of the debt with BNDES, which add up to R$ 563.1 million. Minister communicated the determination that the resources be applied in actions against coronavirus.
Debt of the municipality of Rio de Janeiro with the Union through the BNDES (National Bank for Economic and Social Development), is suspended by Minister Luiz Fux, of the Federal Supreme Court (STF).
The minister communicated that the determination would be that such present resources be applied in actions related to the fight against the pandemic of the new coronavirus.
The prefectural installments are due between the months of April and September. And the amount is R$ 563.1 million. Debts result from contracts entered into with the BNDES to make various works feasible. These being due to the 2014 World Cup and the 2016 Rio Olympics. Which at the time, raised a great political discussion in the country. Mainly related to how these resources were being allocated, and if that was the country's real priority. And now the response comes impetuously in the face of our completely unguarded public health systems.
“It cannot be forgotten that Covid-19 containment measures consist of public policies whose implementation requires budgetary resources. Which need to be guaranteed with the utmost urgency, to justify, on an exceptional basis, the intervention of this Court”, said Fux in the decision.
On the last 25th, the city hall had informed the Court that it is unable to honor payments at this time due to the measures it has been taking to combat the disease.
“In the present case, undoubtedly, judicial abstention would cause the Municipality of Rio de Janeiro to worsen an unprecedented financial crisis, as well as, ultimately, the loss of more human lives as a result of COVID-19. This undesired consequence can be mitigated by this judicial provision”, added the minister.
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